BnkToTheFuture outlines three rescue options for Celsius

The Celsius stakeholding online investment platform BnkToTheFuture unveiled three rescue plans for the crypto lender facing a liquidity crisis.

#DepositorsFirst Celsius Recovery Plan https://t.co/YkGy3N0Gwd

— Simon Dixon (Beware Impersonators) (@SimonDixonTwitt) June 30, 2022

“BnkToTheFuture and our CEO Simon Dixon, as depositors and shareholders, undertook to do everything in our power to find a good solution for Celsius’s clients and shareholders. We have done this successfully before with other companies, and we can do it again,” the platform’s team said.

The firm owns more than 5% of Celsius’s shares, and Dixon was described in the statement as “one of the largest depositors” of the crypto lender.

The rehabilitation proposals from BnkToTheFuture should not be construed as legal advice. They include:

1. Restructuring Celsius for a restart and providing depositors with the possibility of benefiting from recovery through financial engineering. This path involves risks and does not guarantee full restitution of funds, the authors noted.
2. A joint investment in a pool of \”the most influential Bitcoin whales\” and the community. The firm used a similar plan to revive Bitfinex in 2016. Earlier for Celsius it had already presented by Dixon.
3. An operational plan that would allow the new organisation and team to reorganise and recover depositors’ funds. In the authors’ view, the option also does not guarantee full recovery and carries associated risks.

BnkToTheFuture has put its proposals up for community consideration. The firm intends to gauge users’ views and perhaps receive other rehabilitation options from them before the shareholders’ meeting.

Celsius said it continues to take steps to preserve assets and explore available options.

Operating with the entire community and all clients in mind, we continue to take steps to preserve and protect assets and explore the options available to us. Our latest blog here https://t.co/ckIDi2O0Dc

— Celsius (@CelsiusNetwork) June 30, 2022

“These options include, among other things, pursuing strategic deals as well as restructuring our liabilities. These investigations are complex and time-consuming, but we want the community to know that our teams are working with experts from a wide range of fields,” the statement said.

On June 13, Celsius suspended withdrawals, trading and transfers between accounts due to extreme market conditions.

Leading investors in the crypto-lending company declined to provide it with additional financing, according to media reports.

Professor of law Adam Levitin stated that Celsius’s leadership had bet on a “resurrection venture”. In his view, the firm’s bankruptcy is essentially inevitable.

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